South Africa Case Law

A Taxpayer v Commissioner, South African Revenue Service (IT45638)

A Taxpayer v Commissioner, South African Revenue Service (IT45638) [2023] ZATC 11; 86 SATC 303 (19 July 2023)

Court

Tax Court

Case number

IT45638

Judges

Binns-Ward, Warneke, Titus

The court found that the taxpayer's grant payment to Newco was not merely incidental to its income-earning operations but was directed at creating or materially expanding a source of future income. The expenditure resulted in an enduring benefit for the taxpayer, as it secured a long-term supply of grapes to market, thereby enhancing its income-producing structure. The quantum and nature of the expenditure, as well as the group relationship and practical certainty of future benefit, pointed strongly to its capital character. The deduction was therefore rightly disallowed. Regarding the penalt…

Source excerpt

• Income Tax Deduction
• Capital Vs Revenue Expenditure
• Penalty Remission
• Interest On Underpayment

Peri Formwork Scaffolding Engineering (Pty) Ltd v Commissioner for the South African Revenue Service (A67/2020)

Peri Formwork Scaffolding Engineering (Pty) Ltd v Commissioner for the South African Revenue Service (A67/2020) [2021] ZAWCHC 165; 84 SATC 91 (23 August 2021)

Court

Western Cape High Court, Cape Town

Case number

A67/2020

Judges

DS Kusevitsky, NC Erasmus, ET Steyn

The court held that section 244 of the Tax Administration Act governed the payment deadline for PAYE, but remitted SARS’s 10% penalty under section 217(3).

• Income Tax Act
• Tax Administration Act
• Computation Of Time
• Penalty Remission
• Statutory Interpretation
• Tax-law